Engaging Your People in Tough Times - How storytelling is transforming business

In tough times, managers need to step up in their role and truly lead their people, provide the security that comes from knowing who is in control, optimise the effort of those in the workforce, and connect them to the journey of the business. People are naturally nervous in adverse economic times and the fear that is generated does nothing to encourage productivity or creativity. In fact, it causes the opposite – stagnation and lethargy. Staff engagement is crucial to maintaining energy and commitment, and not least of all, productivity. Tough times are also changing times. Companies are challenged with implementing new directions and procedures, strengthening or changing their customer base, innovating new products for a changing environment and providing a new focus on corporate strengths and capabilities. CEO’S and the senior executive team need assistance in many areas but most particularly in how to communicate these changes to their people and how to send a consistent message from top to bottom throughout an organisation. Managing change is always challenging but in tough times it is even more so. It is vitally important during these times that the top leadership team provides clear and consistent direction. Most times, leaders strive to get their refreshed or changed strategy across with countless PowerPoint slides, road-shows which allow minimal involvement from their audience, and all too often with little regard to the interests or understanding of those who are present. The majority of staff are bored rigid with charts and graphs, with financial predictions, and then a lonesome plea that “we can all get there if we put our shoulders to the wheel”. Why? How? The cynicism following such gatherings is palpable. So how can businesses effectively unlock the discretionary effort of its employees? We realise that one of the main challenges that business leaders face in successfully executing their change strategy is engaging their organisation. This challenge is amplified in tough times. But successful change, which often depends on people refocusing their priorities and changing their working practices and behaviours requires understanding, energy, commitment and active involvement from every area of the organisation. And for large, complex organisations keeping people on course is one of the biggest challenges in business today.   “Companies who significantly improve internal communication effectiveness generate a 15% increase in market value” For a moment, have a look at some sobering facts: High levels of employee engagement and connectivity are a critical factor for companies who seek to outperform their competitors. Recent research from Watson Wyatt shows that companies who significantly improve internal communication effectiveness generate a 15% increase in market value. Tower Perrin-ISR found a gap of almost 52% in the one-year performance improvement in operating income between companies with highly engaged employees versus companies whose employees have low engagement scores. Kotter and Heskett have also demonstrated that organisations with adaptive cultures gained values 12 times faster than those with non-adaptive cultures. The majority of companies are convinced that there is a direct link between engagement and the bottom line but that it is “statistically difficult to measure in a way where we could assign a financial number”. (Denis Duverne, CFO, AXA). If we could, maybe the analysts would start to really listen.   In the coming year of challenges and uncertainties, there is one certainty. The people in any organisation are generally the biggest cost – and the biggest asset. Making the connection across the whole business really makes sense! When times are tough, people often turn to what they know best or what they are comfortable with. While business has not really understood the power of storytelling and some may think it’s just “soft stuff”, the use of narrative has shaped our development throughout the history of man and has been a significant factor in shaping our philosophies, beliefs, and behaviours. Why is storytelling so powerful? Put quite simply, people remember stories.   “Stories motivate, persuade, entertain, inform and inspire us. Stories are engaging and help us to share information and ideas. We tell and hear stories every day in our lives. Compelling stories have far-reaching emotional impact, and a far longer shelf-life than the dry, abstract, one-way methods of communication that clutter businesses today. Stories have a powerful role to play in influencing and changing behaviours, recognising ‘heroes’, demonstrating progress and celebrating success. Through the emotional impact and self- discovery of a story’s implication they help us understand and make sense of what we do and why we do it – and recognise what we need to do differently. Stories provide the means for people within an organisation to replicate excellent behaviours and activities.” The Storytellers (UK). One of the good examples of a business strategy turned into a simple story comes from Starbucks. Howard Schultz always told his employees that “we’re not in the coffee business, we’re in the people business”.  What a difference this simple statement made to the employees’ approach to customer service. Another great example is from Coke. In the 80s Coca Cola was struggling. There was talk that they wouldn’t survive and then Robert Goizueta became their leader and changed the company’s thinking. Rather than saying that Coke was fighting for a greater share of the cola market, he insisted they were fighting for a greater share of the consumer’s stomach. Immediately they were propelled into competing with everything else people drink – water, milk, coffee, whatever. What an incredible way to change people’s focus, energies and commitment.   All companies can benefit from storytelling, but it needs to be carefully managed so that stories aren’t trite and ineffective. They need to be built into a strong program which will touch all people and not left to the discretion of individual managers. Even great leaders need help in this area and, most particularly, help is needed in embedding the developed story throughout the organisation – from the top down. A Storytelling program needs to align cultures, behaviours and strategies into a cohesive, logical framework to achieve success.   Using storytelling will give managers the tools to step up in their role, to demonstrate true leadership and espouse the journey that the organisation needs to take, to show that they are in control and to enthuse and motivate their employees. Such a program will give people a reason for coming to work, a reason to give more of their discretionary effort and a reason to be a willing and productive member of the company. For success, all people must be connected to the journey the business is on, and this is never as important as in tough times. About the Author Margaret Harrison is Managing Director of Our HR Company, partnering with The Storytellers (UK) in the Asia-Pacific region. Contact Details Principal: Margaret Harrison Direct Line: 03 9866 3866 Mobile: 0438 244 866 Email: Margaret.harrison@ourhrcompany.com www.ourhrcompany.com Media Enquiries Michael Field Mobile: 0417 900 109 Email: michael@michaelfield.com


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Our HR Company is a boutique consulting firm, located in Melbourne, Australia, specialising in Training and Development, Executive Search and outsourced Human Resources. See www.ourhrcompany.com

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